I will not sell XYZ as my yield on cost is now 8% I’m sure you have heard (or even said) this line a few times, haven’t you? Funny enough, I’ve also used this line to justify some of my holdings. For example, I’ve considered the yield on cost for my low dividend paying stocks. The idea is to show how a 1-2% dividend yield stocks could become a 3%+ yielder in a few years. Examples of companies like Disney (DIS) which pay around 1%-1.5% yield, but provide shareholders with a strong pay raise each …
Part II: Do I Need a Million Dollars to Retire?
Do I need a million dollars to retire? I bet you’ll need more than that! In my previous article, I discussed how the concept of retirement has evolved over time. I ended my article with the small combination of factors that will influence how you will live the rest of your life. There are many myths about the magical number you’ll need to attain before you can claim to the world you can retire in peace. One of the most common is reaching the symbolic million-dollar mark to retire. Do you …
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A Friendly Guide to Retirement Part 1: What is Retirement Anyways?
During the upcoming weeks, I’ll publish articles as part of a series about retirement planning. Please let me know if you have any comments or questions about this topic. The most common reason to start investing is to build a nest egg for our retirement days. Believe it or not, the concept of retirement is relatively new. In fact, before the 1900s, I’m pretty sure retirement wasn’t even a word. Back then, as many people started working and living longer, the idea of having a few years to …
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Quick REITs Analysis Guidelines
For this final part, I wanted to give you a methodology to quickly analyse REITs. If you have missed the rest of this series, you can read more about REITs investing here: REITs Guide Part I REITs Guide Part II REITs Guide Part III I know that you don’t have all the time in the world and that one of the reasons you purchased this book was to save time. After reading the past few articles on REITs, you may be ready to drop this option and concentrate on dividend stock picking. REITs …
Be Careful, There Are No Free Lunches With REITs Either…
In the first part of this series, I’ve painted a pretty nice picture of REITs, don’t you think? But there is nothing perfect in this world and REITs are not even close to perfection. There are several things you must look out for before considering investing in any REITs: Be Careful – the Tax guy has an eye on you! As opposed to dividend stocks, distributions from REITs are mostly considered as income with a portion of return of capital (ROC). Remember that income from REITs is fully taxable …
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REITs Investing Guide
I’m receiving a lot of questions about REITs lately. On one side, interest rates are low and investors are concerned about what will happen to the loan structure once the rates go up. On the other, with such low interest rate environment, many REITs look very appealing with their high yield. I’m also a bit concerned about the future of brick & mortar stores. Many of them are closing as they can’t keep up with online stores. It’s not like a new chain will occupy those empty spaces…. Most …
